{"id":4938,"date":"2025-06-02T19:51:05","date_gmt":"2025-06-02T14:21:05","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=4938"},"modified":"2025-06-02T19:51:08","modified_gmt":"2025-06-02T14:21:08","slug":"equity-mutual-funds","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/","title":{"rendered":"Best Equity Mutual Funds in India (2025) | Top Equity Funds"},"content":{"rendered":"\n<p>Equity <a href=\"https:\/\/www.tickertape.in\/blog\/mutual-funds\/\">mutual funds<\/a> are not just about parking your money in the stock market; they\u2019re about leveraging professional expertise to navigate volatility and capitalise on opportunities. Fund managers rely on a phenomenon called \u201cmarket timing agility\u201d. This means that they make tactical adjustments to their portfolios, shifting between sectors or stocks based on market trends. In this blog, we\u2019ll explain the meaning of <a href=\"https:\/\/www.tickertape.in\/blog\/mutual-funds-based-on-market-capitalization\/\">equity mutual funds<\/a>, their types, features, benefits, and explore the list of the best <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-equity\/\">equity<\/a> <a href=\"https:\/\/www.tickertape.in\/blog\/advantages-disadvantages-of-mutual-funds\/\">mutual funds in India<\/a>. Whether you&#8217;re planning a SIP in equity mutual funds or a lump-sum investment, understanding these funds is crucial before investing.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#Best-Equity-Mutual-Funds-In-India\" title=\"Best Equity Mutual Funds In India\">Best Equity Mutual Funds In India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#Details-Of-Top-3-Equity-Mutual-Funds\" title=\"Details Of Top 3 Equity Mutual Funds\">Details Of Top 3 Equity Mutual Funds<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#Quant-Small-Cap-Fund\" title=\"Quant Small Cap Fund\">Quant Small Cap Fund<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#Quant-Infrastructure-Fund\" title=\"Quant Infrastructure Fund\">Quant Infrastructure Fund<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#Nippon-India-Small-Cap-Fund\" title=\"Nippon India Small Cap Fund\">Nippon India Small Cap Fund<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#What-Are-Equity-Mutual-Funds\" title=\"What Are Equity Mutual Funds?\">What Are Equity Mutual Funds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#Types-Of-Equity-Mutual-Funds\" title=\"Types Of Equity Mutual Funds\">Types Of Equity Mutual Funds<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#Based-on-market-capitalisation\" title=\"Based on market capitalisation\">Based on market capitalisation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#Based-On-Investment-Strategy\" title=\"Based On Investment Strategy\">Based On Investment Strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#Based-On-Tax-Treatment\" title=\"Based On Tax Treatment\">Based On Tax Treatment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#Based-On-Investment-Style\" title=\"Based On Investment Style\">Based On Investment Style<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#How-to-Invest-in-Equity-Mutual-Funds\" title=\"How to Invest in Equity Mutual Funds\">How to Invest in Equity Mutual Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#Features-Of-Equity-Mutual-Funds\" title=\"Features Of Equity Mutual Funds&nbsp;\">Features Of Equity Mutual Funds&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#Benefits-Of-Equity-Mutual-Funds\" title=\"Benefits Of Equity Mutual Funds\">Benefits Of Equity Mutual Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#Equity-Mutual-Fund-Taxation-as-per-the-2024-Budget\" title=\"Equity Mutual Fund Taxation as per the 2024 Budget\">Equity Mutual Fund Taxation as per the 2024 Budget<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#Equity-vs-Debt-Mutual-Funds\" title=\"Equity vs Debt Mutual Funds\">Equity vs Debt Mutual Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#How-to-Choose-the-Best-Equity-Mutual-Funds-for-Investing\" title=\"How to Choose the Best Equity Mutual Funds for Investing\">How to Choose the Best Equity Mutual Funds for Investing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#Risks-Involved-While-Investing-in-Equity-Mutual-Funds\" title=\"Risks Involved While Investing in Equity Mutual Funds\">Risks Involved While Investing in Equity Mutual Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#To-Wrap-it-Up\" title=\"To Wrap it Up\">To Wrap it Up<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#FAQs\" title=\"FAQs\">FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#What-is-an-equity-fund\" title=\"What is an equity fund?\">What is an equity fund?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#Which-equity-mutual-fund-is-best\" title=\"Which equity mutual fund is best?\">Which equity mutual fund is best?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#Who-should-invest-in-the-equity-funds\" title=\"Who should invest in the equity funds?\">Who should invest in the equity funds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#Is-equity-mutual-fund-safe\" title=\"Is equity mutual fund safe?\">Is equity mutual fund safe?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.tickertape.in\/blog\/equity-mutual-funds\/#What-is-the-ideal-investment-duration-for-an-equity-mutual-fund\" title=\"What is the ideal investment duration for an equity mutual fund?\">What is the ideal investment duration for an equity mutual fund?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Best-Equity-Mutual-Funds-In-India\"><\/span>Best Equity Mutual Funds In India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Name<\/strong><\/td><td><strong>Sub Category<\/strong><\/td><td><strong>AUM (Cr)<\/strong><\/td><td><strong>CAGR 3Y (%)<\/strong><\/td><td><strong>Expense Ratio (%)<\/strong><\/td><td><strong>CAGR 5Y (%)<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/quant-small-cap-fund-M_QUNF\">Quant Small Cap Fund<\/a><\/td><td>Small Cap Fund<\/td><td>24,892.62<\/td><td>19.85<\/td><td>0.69<\/td><td>49.22<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/quant-infrastructure-fund-M_QUNG\">Quant Infrastructure Fund<\/a><\/td><td>Sectoral Fund &#8211; Infrastructure<\/td><td>3,158.34<\/td><td>17.72<\/td><td>0.75<\/td><td>42.07<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/nippon-india-small-cap-fund-M_NISL\">Nippon India Small Cap Fund<\/a><\/td><td>Small Cap Fund<\/td><td>55,490.73<\/td><td>21.06<\/td><td>0.74<\/td><td>39.48<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/icici-pru-commodities-fund-M_ICPO\">ICICI Pru Commodities Fund<\/a><\/td><td>Thematic Fund<\/td><td>2,614.85<\/td><td>14.25<\/td><td>1.22<\/td><td>39.26<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/icici-pru-infrastructure-fund-M_ICPCS\">ICICI Pru Infrastructure Fund<\/a><\/td><td>Sectoral Fund &#8211; Infrastructure<\/td><td>7,213.94<\/td><td>28.28<\/td><td>1.17<\/td><td>38.26<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/bandhan-small-cap-fund-M_IDFM\">Bandhan Small Cap Fund<\/a><\/td><td>Small Cap Fund<\/td><td>9,516.16<\/td><td>26.52<\/td><td>0.5<\/td><td>37.40<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/bank-of-india-small-cap-fund-M_BOIL\">Bank of India Small Cap Fund<\/a><\/td><td>Small Cap Fund<\/td><td>1,574.18<\/td><td>19.47<\/td><td>0.48<\/td><td>37.11<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/bandhan-infrastructure-fund-M_IDFII\">Bandhan Infrastructure Fund<\/a><\/td><td>Sectoral Fund &#8211; Infrastructure<\/td><td>1,563.07<\/td><td>26.27<\/td><td>0.88<\/td><td>36.65<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/motilal-oswal-midcap-fund-M_MOLS\">Motilal Oswal Midcap Fund<\/a><\/td><td>Mid Cap Fund<\/td><td>26,028.34<\/td><td>25.97<\/td><td>0.64<\/td><td>36.64<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/tata-small-cap-fund-M_TASC\">Tata Small Cap Fund<\/a><\/td><td>Small Cap Fund<\/td><td>9,203.23<\/td><td>21.55<\/td><td>0.3<\/td><td>36.18<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Note: The data is from 21st April 2025. To get this list of public banks in India on the <a href=\"https:\/\/www.tickertape.in\/screener\/mutual-fund?utm_source=blog&amp;utm_medium=article\">Tickertape Mutual Fund Screener<\/a>, apply the below-mentioned filter.<\/p>\n\n\n\n<ul>\n<li>Category > Equity \u2013 Select all<\/li>\n\n\n\n<li>Plan: Growth<\/li>\n\n\n\n<li>CAGR 5Y: Set to High \u2013 Sort from highest to lowest<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Details-Of-Top-3-Equity-Mutual-Funds\"><\/span>Details Of Top 3 Equity Mutual Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Quant-Small-Cap-Fund\"><\/span><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/quant-small-cap-fund-M_QUNF\"><strong>Quant Small Cap Fund<\/strong><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Managed by Quant Money Managers Limited (QMML), the Quant Small Cap Fund focuses on identifying high-growth potential companies in the small-cap segment. Among the top equity mutual funds for 2025, the fund is known for its dynamic approach and aims to deliver superior returns through aggressive sector rotation and tactical allocation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Quant-Infrastructure-Fund\"><\/span><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/quant-infrastructure-fund-M_QUNG\"><strong>Quant Infrastructure Fund<\/strong><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Also managed by Quant Money Managers Limited (QMML), the Quant Infrastructure Fund is tailored to tap into India\u2019s rapidly evolving infrastructure sector. This scheme aims to capitalise on opportunities arising from government and private sector investments in infrastructure and related themes, qualifying it as one of the equity mutual funds for wealth creation and potentially one of the equity funds with best returns.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Nippon-India-Small-Cap-Fund\"><\/span><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/nippon-india-small-cap-fund-M_NISL\"><strong>Nippon India Small Cap Fund<\/strong><\/a><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Backed by Nippon India Mutual Fund (NIMF), one of the top mutual funds in India, this fund offers investors exposure to high-growth small-cap stocks. Among the high-growth equity mutual funds, the fund leverages extensive research and disciplined stock-picking strategies to generate long-term capital appreciation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What-Are-Equity-Mutual-Funds\"><\/span>What Are Equity Mutual Funds?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Equity funds are one of the mutual fund schemes which predominantly invest in the shares of the companies. These are also known as growth funds. The fund manager selects the stocks that deliver maximum returns while controlling the risk. Return on equity mutual funds is typically higher compared to <a href=\"https:\/\/www.tickertape.in\/blog\/what-are-debt-funds\/\">debt funds<\/a> or term deposits. However, there is a certain amount of risk associated with these funds.&nbsp;<\/p>\n\n\n\n<p>Equity-oriented mutual funds invest at least 65% of their total assets in equity and equity-related instruments. The fund manager manages the remaining assets based on the mutual fund investment in India scheme and its objective. These funds are preferred by investors with long-term goals and those looking for long-term equity fund investments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types-Of-Equity-Mutual-Funds\"><\/span>Types Of Equity Mutual Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>These funds are divided into several broad categories, as listed below.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Based-on-market-capitalisation\"><\/span>Based on market capitalisation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul>\n<li><strong>Large cap equity funds:<\/strong> These invest in large-cap companies, i.e. top 100 companies in terms of <a href=\"https:\/\/www.tickertape.in\/blog\/market-capitalization\/\">market capitalisation<\/a>.\u00a0<\/li>\n\n\n\n<li><strong>Mid cap equity funds:<\/strong> These invest in mid-cap companies that are classified between 101 and 250 in market capitalisation.\u00a0<\/li>\n\n\n\n<li><strong>Small cap equity funds: <\/strong>Investors should be aware that small-cap funds are more vulnerable to<a href=\"https:\/\/www.tickertape.in\/blog\/strategies-to-tackle-volatility\/\"> market volatility<\/a> and risk and are often considered high-growth equity mutual funds.<\/li>\n\n\n\n<li><strong>Multi cap funds:<\/strong> These <a href=\"https:\/\/www.tickertape.in\/blog\/how-to-invest-in-the-stock-market-beginners-guide\/\">invest in stocks<\/a> with various market capitalisations depending on market conditions.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Based-On-Investment-Strategy\"><\/span>Based On Investment Strategy<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul>\n<li><strong>Theme and sectoral equity funds based on investment strategy<\/strong>: An <a href=\"https:\/\/www.tickertape.in\/blog\/6-factors-investing-in-equity-funds\/\">equity fund<\/a> may follow a particular investment theme, such as an international market or an emerging market. Some schemes may also invest in a specific market sector, such as Banking, Financial Services and Insurance (BFSI), IT, or pharmaceuticals. It\u2019s worth noting that sector or theme-based funds incur a higher risk because they focus on a particular area or theme.<\/li>\n\n\n\n<li><strong>Focused equity fund<\/strong>: This fund invests in up to 30 equities of companies with market capitalisations that are specified at the time of the scheme\u2019s commencement.<\/li>\n\n\n\n<li><strong>Contra equity funds<\/strong>: These types of equity investment funds focus on underperforming equities in the market and buy them at bargain prices with the expectation that they will rebound in the long run.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Based-On-Tax-Treatment\"><\/span>Based On Tax Treatment<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul>\n<li><strong>Equity Linked Savings Program (ELSS)<\/strong>: These funds are the only equity schemes that offer tax benefits under Section 80C of the <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-income-tax\/\">Income Tax<\/a> Act. ELSS plans come with a 3-year lock-in period, making them among the top equity funds for tax savings.<\/li>\n\n\n\n<li><strong>Non-tax saving equity funds<\/strong>: All other equity funds, except for ELSS, are non-tax saving plans. This means that the profits are taxable as capital gains.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Based-On-Investment-Style\"><\/span>Based On Investment Style<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul>\n<li><strong>Active funds<\/strong>: These funds are managed by fund managers who select the stocks to comprise the fund. They monitor it carefully for possible rebalancing opportunities to capture maximum equity fund returns India. Features of mutual funds like active management make these funds attractive to investors seeking higher return on equity mutual funds.<\/li>\n\n\n\n<li><strong>Passive funds<\/strong>: These funds usually mirror a market index and consist of the same stocks in the same quantity and weightage as the fund\u2019s composition. The fund manager is not involved in the stock selection in these schemes.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How-to-Invest-in-Equity-Mutual-Funds\"><\/span>How to Invest in Equity Mutual Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Investing in the best equity mutual funds India is simpler than you might think. Follow these steps to begin your journey:<\/p>\n\n\n\n<ol>\n<li><strong>Open a Demat or Trading Account: <\/strong>Start by opening a demat, trading, or brokerage account, which serves as the platform for your investments.<\/li>\n\n\n\n<li><strong>Explore and Choose the Right Fund:<\/strong> Research different equity mutual funds to identify the top-performing equity funds that align with your financial goals. Tools like the<a href=\"https:\/\/www.tickertape.in\/screener\/home\/mutual-fund?ref=homepage_product-switcher\"> Tickertape Mutual Fund Screener <\/a>can help you analyse a fund\u2019s past performance and fundamentals for informed decision-making.<\/li>\n\n\n\n<li><strong>Select the Investment Mode:<\/strong> Once you\u2019ve chosen your fund, specify the investment mode\u2014Systematic Investment Plan (SIP) or a lumpsum amount\u2014and proceed to invest by following the instructions on the platform.\u00a0<\/li>\n\n\n\n<li><strong>Complete KYC Compliance: <\/strong>Provide your Know Your Customer (KYC) details, including your PAN and bank information, to finalise the investment process.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Features-Of-Equity-Mutual-Funds\"><\/span>Features Of Equity Mutual Funds&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The features of equity-oriented mutual funds in India are:<\/p>\n\n\n\n<ul>\n<li><strong>Low expense ratio:<\/strong> According to the Securities and Exchanges Board of India (<a href=\"https:\/\/www.tickertape.in\/blog\/securities-and-exchange-board-of-india-functions-powers-and-regulations-of-sebi\/\">SEBI<\/a>), the expense ratio of equity funds should not exceed 2.5%, making them attractive options for those looking for mutual funds with the best returns.<\/li>\n\n\n\n<li><strong>Tax exemption: <\/strong>A tax exemption is provided in the case of <a href=\"https:\/\/www.tickertape.in\/blog\/how-to-invest-in-elss\/\">ELSS funds<\/a> (Equity-Linked Savings Scheme). These funds are among the best equity mutual funds for long term investments due to their tax benefits and 3-year lock-in period, the shortest among tax-saving schemes.<\/li>\n\n\n\n<li><strong>Diversified portfolio: <\/strong>The<strong> <\/strong>best equity mutual fund SIP provides exposure to various schemes, even for small investment amounts. This helps investors diversify their portfolios across the top-performing equity funds with the best returns.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits-Of-Equity-Mutual-Funds\"><\/span>Benefits Of Equity Mutual Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here are some benefits of investing in the top equity funds in India:<\/p>\n\n\n\n<ul>\n<li>Professional fund managers handle your portfolio, ensuring optimal growth by investing in top return mutual funds.<\/li>\n\n\n\n<li>ELSS funds provide equity fund tax benefits, making them among the best equity mutual funds for tax efficiency.<\/li>\n\n\n\n<li>SIP options allow you to start with as little as Rs 500 per month, making investments in the equity mutual funds for growth accessible to everyone.<\/li>\n\n\n\n<li>Equity fund portfolio diversification offers exposure to multiple sectors and schemes, ensuring you are invested in the best equity mutual funds for long term goals.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Equity-Mutual-Fund-Taxation-as-per-the-2024-Budget\"><\/span>Equity Mutual Fund Taxation as per the 2024 Budget<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Understanding the latest tax regulations on equity mutual funds is essential for making informed investment decisions. The Union Budget 2024 has introduced significant changes to the taxation of equity mutual funds, simplifying the tax structure while altering rates and benefits.&nbsp;<\/p>\n\n\n\n<p>Here is a detailed breakdown of the new tax rules:<\/p>\n\n\n\n<ul>\n<li><strong>Tax-Free Limit:<\/strong> Gains up to Rs. 1.25 lakh in a financial year remain tax-free. This limit has been increased from the previous threshold of Rs. 1 lakh.<\/li>\n\n\n\n<li><strong>Tax Rate:<\/strong> Any gains above Rs. 1.25 lakh are taxed at a flat rate of 12.5%. It was previously taxed at 10%.<\/li>\n\n\n\n<li><strong>Indexation<\/strong>: It\u2019s important to note that the benefit of indexation, which previously allowed investors to adjust the purchase price of their assets for inflation, has been removed for all asset classes, including equity mutual funds.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Capital Gains Tax<\/td><td>Holding Period<\/td><td>Old Rate<\/td><td>New Rate<\/td><\/tr><tr><td>Short-Term Capital Gains (STCG)<\/td><td>Less than 12 months<\/td><td>15%<\/td><td>20%<\/td><\/tr><tr><td>Long-Term Capital Gains (LTCG)<\/td><td>More than 12 months<\/td><td>10%<\/td><td>12.50%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>No Indexation Benefit: This change affects the overall tax liability, potentially increasing it for long-term investors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Equity-vs-Debt-Mutual-Funds\"><\/span>Equity vs Debt Mutual Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Though equity funds and debt funds belong to the mutual funds family, there are a few differences between these. Equity funds mainly invest in stocks of companies, while debt funds invest in fixed-income securities like Certificates of Deposit (CD), Bonds, <a href=\"https:\/\/www.tickertape.in\/blog\/government-securities\/\">government securities<\/a> and various other debt instruments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How-to-Choose-the-Best-Equity-Mutual-Funds-for-Investing\"><\/span>How to Choose the Best Equity Mutual Funds for Investing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Selecting the best equity mutual funds requires careful consideration of several factors:<\/p>\n\n\n\n<ol>\n<li><strong>Define Your Financial Goals:<\/strong> Assess your investment objectives, such as wealth creation, retirement planning, or education funding, to identify funds that align with your goals. Equity investment typically works best for long-term financial goals due to its potential for higher returns.<\/li>\n\n\n\n<li><strong>Analyse Fund Performance:<\/strong> While past performance doesn\u2019t guarantee future returns, it provides insight into how well the fund has performed across market cycles. Look for funds with consistent returns on mutual funds over a period of 5\u201310 years.<\/li>\n\n\n\n<li><strong>Evaluate Fund Manager Expertise:<\/strong> Assess high-return equity mutual funds managed by experienced professionals with a proven track record of delivering strong equity investment results.<\/li>\n\n\n\n<li><strong>Assess Risk and Volatility: <\/strong>Different equity funds come with varying levels of risk. Conduct a equity fund risk analysis to ensure it aligns with your risk tolerance.<\/li>\n\n\n\n<li><strong>Expense Ratio and Fees: <\/strong>Lower expense ratios mean a larger portion of your returns stays with you. Compare fees across funds to find the best equity mutual funds for long-term and for cost efficiency.<\/li>\n\n\n\n<li><strong>Use Screening Tools: <\/strong>Tools like Tickertape allow you to filter and sort funds based on returns, risk, and other criteria to help you choose the best equity mutual funds.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Risks-Involved-While-Investing-in-Equity-Mutual-Funds\"><\/span>Risks Involved While Investing in Equity Mutual Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>While investing in equity funds offers the potential for high returns, it also comes with certain risks:<\/p>\n\n\n\n<ol>\n<li><strong>Market Risk:<\/strong> Since mutual funds equity investments are linked to the stock market, their performance fluctuates based on market movements. Adverse market conditions can impact the value of your investment.<\/li>\n\n\n\n<li><strong>Volatility Risk:<\/strong> Equity markets are inherently volatile. Short-term fluctuations can result in temporary losses, making equity investment suitable for long-term investors who can weather market ups and downs.<\/li>\n\n\n\n<li><strong>Sector-Specific Risk: <\/strong>Funds focusing on specific sectors or themes can face concentrated risks if those sectors underperform. Diversifying across mutual funds equity categories can help mitigate this risk.<\/li>\n\n\n\n<li><strong>Liquidity Risk: <\/strong>While mutual funds offer higher liquidity than many other investments, certain equity funds may face liquidity constraints during volatile market conditions.<\/li>\n\n\n\n<li><strong>Fund Manager Risk:<\/strong> The decisions made by the fund manager significantly influence the returns on mutual funds. Poor management can lead to underperformance compared to benchmarks.<\/li>\n<\/ol>\n\n\n\n<p>By understanding these risks, you can make informed decisions when choosing and investing in equity funds, ensuring your portfolio aligns with your financial goals and risk tolerance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"To-Wrap-it-Up\"><\/span>To Wrap it Up<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Investing in equity mutual funds is a smart way to achieve long-term financial goals while benefiting from market growth. By choosing the best equity mutual funds and leveraging options like SIPs, investors can benefit from professional fund management, and potentially high returns. Understanding the features, benefits, and taxation rules is key to making informed decisions. Whether you\u2019re a seasoned investor or a beginner, equity mutual funds remain a versatile and rewarding investment choice.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1739366623187\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-is-an-equity-fund\"><\/span>What is an equity fund?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>An equity fund is a mutual fund scheme that invests in companies&#8217; stocks.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1739366628432\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Which-equity-mutual-fund-is-best\"><\/span>Which equity mutual fund is best?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>You can use the Tickertape <a href=\"https:\/\/www.tickertape.in\/blog\/how-to-use-tickertape-mutual-fund-screener\/\">Mutual Fund Screener<\/a> to find the best equity mutual funds. You can follow the steps below.<br \/>1. Login to your account<br \/>2. Go to <a href=\"https:\/\/www.tickertape.in\/screener\/mutual-fund?utm_source=blog&amp;utm_medium=article\">Tickertape Mutual Fund Screener<\/a><br \/>3. Select \u201cEquity Mutual Funds\u201d in the category\u00a0<br \/>4. Add additional <a href=\"https:\/\/www.tickertape.in\/blog\/14-new-filters-on-tickertape-stock-screener\/\">filters<\/a> like 5 yr CAGR, NAV, Expense Ratio, 3 yr CAGR, and more if needed<br \/>5. Analyse the funds as per your requirement<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1739366653759\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Who-should-invest-in-the-equity-funds\"><\/span>Who should invest in the equity funds?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Equity funds are preferred by investors who are looking for long-term investments. However, it depends on the investor\u2019s investment goal, time period and risk appetite.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1739366662275\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Is-equity-mutual-fund-safe\"><\/span>Is equity mutual fund safe?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Equity mutual funds carry market-related risks as they invest primarily in stocks, but they can offer higher returns over the long term. <\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1739366670797\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What-is-the-ideal-investment-duration-for-an-equity-mutual-fund\"><\/span>What is the ideal investment duration for an equity mutual fund?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The ideal investment duration for equity mutual funds is 5-10 years or more, as this allows you to ride out market volatility and achieve potential long-term growth.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Here\u2019s a list of top-performing equity mutual funds in India for 2025. Compare historical returns, fund performance and SIP options among best equity funds.<\/p>\n","protected":false},"author":90,"featured_media":4944,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[1721,1750],"tags":[],"acf":[],"modified_by":"vanessa sequeira","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/10\/06.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/4938"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/90"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=4938"}],"version-history":[{"count":26,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/4938\/revisions"}],"predecessor-version":[{"id":17133,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/4938\/revisions\/17133"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/4944"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=4938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=4938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=4938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}